Mumbai : Quarterly results along with macro-economic data points are expected to guide the key Indian equity indices during the week ahead, experts said.
Additionally, the trajectory of the two key indices is expected to be influenced by global cues, profit bookings and expectations of more economic announcements to support growth.
“In the near term, stock specific actions will be witnessed due to ongoing Q2 results,” said Research Head at Geojit Financial Services Vinod Nair.
“Going ahead, market will closely watch details of bank recapitalisation programme and next GST Council meet.”
Companies like Lupin, Marico, Tata Steel, EIH, HDFC, Bharti Airtel, Dr. Reddys Lab, Interglobe Aviation, Hero MotoCorp, TVS Motor Co, Vedanta and Punjab National Bank are expected to announce their quarterly results in the coming trade week.
“We expect the stock specific action to remain high for the coming few days,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
Besides results, macro-economic data points like Index of Eight Core Industries (ECI) figures and the country’s fiscal deficit data up to September will be keenly watched by investors.
In addition, monthly automobile sales figures and the Purchasing Managers’ Index (PMI) manufacturing and services data will become other major sentiment drivers.
Other factors such as premium valuation, US GDP data and US Federal Reserve’s interest rate decision coupled with direction of foreign funds will also impact the key indices’ movement.
Liquidity-wise, foreign funds turned net buyers of Indian equities last week. The provisional figures from stock exchanges showed that foreign institutional investors invested in Rs 912.33 crore during the week ended on October 27.
On the currency front, the rupee closed flat at 65.05 against the US dollar.
“Indian rupee has been resilient and inspite of the weakness against USD, it has fared quite well against its EM (emerging markets) peers,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.
According to Banerjee, in the near term, rupee is expected to trade within a range of 64.70 and 65.50 levels on spot against USD.
On technical charts, NSE Nifty’s underlying trend remains bullish.
“Further upsides are likely once the immediate resistance of 10,365 points is taken out,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“Weakness could emerge next week if the support of 10,179 points is broken.”
The key Indian equity indices — BSE Sensex and NSE Nifty — rose for the fourth straight time on a weekly basis on the back of state-run banks’ recapitalisation measures which were announced last week.
Consequently, the 30-scrip Sensitive Index (Sensex) edged higher by 572.87 points or 1.75 per cent to 33,157.22 points.
Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) made gains. It rose by 112.2 points or 1.09 per cent to close at 10,323.05 points.
The S&P BSE Sensex touched a record new intra-day highs of 33,286.51 points, while the broader NSE Nifty50 breached 10,366.15-points-mark.
(Rohit Vaid can be contacted at email@example.com)